Can Volkswagen’s Passenger Car Segment Push Top Line Growth For 2019?

by Trefis Team
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Volkswagen AG
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Yes, Trefis estimates Volkswagen Passenger cars segment to push the top line growth for 2019.

Volkswagen AG (OTCMKTS: VWAGY), whose stock currently trades at around $19, generates its revenue primarily from its Volkswagen Passenger cars segment, which is projected to account for 39% of total revenues in 2019, while the Audi cars are expected to contribute 21% to the top line. In this note we discuss the revenue segments of Volkswagen, their historical performance, and expected Total Revenue for 2019. In recently released Q3 2019 results the company reported a revenue of $68.6 billion, up 6.9% y-o-y. Meanwhile earnings were recorded at $8.44 per share up from $6.19 per share in the same period.

You can look at our interactive dashboard analysis ~ Volkswagen Revenues: How does Volkswagen make money? ~ for more details. 

What Does Volkswagen offer?

  • Volkswagen AG develops vehicles and components for the Group’s brands, but also produces and sells vehicles, in particular passenger cars and light commercial vehicles, for the Volkswagen Passenger Cars and Volkswagen Commercial Vehicles brands. In its capacity as parent company, Volkswagen AG holds indirect or direct interests in AUDI AG, SEAT S.A., ŠKODA AUTO a.s., Dr. Ing. h.c. F. Porsche AG, Scania AB, MAN SE, Volkswagen Financial Services AG, Volkswagen Bank GmbH, and a large number of other companies in Germany and abroad.

Has 2 major Operating Segments-

  • Automotive Division: The Automotive Division comprises the Passenger Cars, Commercial Vehicles, and Power Engineering business areas. Activities of the Automotive Division comprise the development of vehicles and engines, the production and sale of passenger cars, light commercial vehicles, trucks, buses and motorcycles, as well as genuine parts, large-bore diesel engines, turbomachinery, special gear units, propulsion components, and testing systems businesses.
  • Financial Services Division: The activities of the Financial Services Division, which corresponds to the Financial Services segment, comprise dealer and customer financing, vehicle leasing, direct banking and insurance activities, fleet management, and mobility offerings.

What Are The Alternatives?

  • Major competitors are companies like Daimler AG, Toyota Motors, Ford, Tata Motors, and General Motors.
Revenue growth expected in 2019 primarily from improvement in Volkswagen Passenger Cars segment. For detailed information regarding change in sales volume and pricing please visit our interactive dashboard – Volkswagen’s Revenues

  • Volkswagen Passenger Cars Revenue fell by 2% from $105.9 billion in 2016 to $103.8 billion in 2018, and is expected to grow by 4.2% to around $108.1 billion in 2019.
  • Audi Cars Revenue rose by 15.3% from $50 billion in 2016 to $57.7 billion in 2018, and is expected to grow by 1.8% to around $58.7 billion in 2019.
  • Skoda Cars Revenue rose by 45.7% from $11.6 billion in 2016 to $16.8 billion in 2018, and is expected to grow by 1.5% to around $17.1 billion in 2019.
  • Porsche and Bentley Cars Revenue rose by 24.2% from $19.1 billion in 2016 to $23.7 billion in 2018, but is expected to fall by 1.4% to around $23.3 billion in 2019.
  • Commercial Vehicles Revenue rose by 14.6% from $19.3 billion in 2016 to $27.2 billion in 2018, but is expected to be nearly flat at around $27.2 billion in 2019.
  • Financial Services Revenue rose by 14.6% from $34.6 billion in 2016 to $39.6 billion in 2018, and is expected to grow by 5% to around $41.6 billion in 2019.

 

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